Organizations have technologies for transforming inputs and outputs. These technologies consist of physical objects, activities and process, knowledge, all of which are brought to bear on raw materials labor and capital inputs during a transformation process. The core technology is that set of productive components most directly associated with the transformation process, for example, production or assembly line in manufacturing firm.
Technology provides the physical and economic resources with which people work. They cannot accomplish much with their bare hands, so they build buildings, design machines, create work processes and assemble resources. The technology that results has a significant influence on working relationships. An assembly line is not the same as a research laboratory, and a steel mill does not have the same working conditions as a hospital. The great benefit of technology is that it allows people to do more and better work, but it also restricts people in various ways. It has costs as well as benefits.
Classification of Technology:
Thomson classified technology into three categories: Long-linked technology, MediatingTechnology and Intensive Technology.
Technology provides the physical and economic resources with which people work. They cannot accomplish much with their bare hands, so they build buildings, design machines, create work processes and assemble resources. The technology that results has a significant influence on working relationships. An assembly line is not the same as a research laboratory, and a steel mill does not have the same working conditions as a hospital. The great benefit of technology is that it allows people to do more and better work, but it also restricts people in various ways. It has costs as well as benefits.
Classification of Technology:
Thomson classified technology into three categories: Long-linked technology, MediatingTechnology and Intensive Technology.
- Long linked Technology: In this, tasks are broken into a number of sequential and interdependent steps, where the outputs of one unit become the input of the next. (eg. Assembly line) this facilitates to have high volume of output and efficiency. This technology calls for mechanistic structures with high levels of specialization, standardization and formalization.
- Mediating Technology: This links different parties who need to be brought together in a direct or indirect way (eg. Banks – use mediating technology to lend money to borrowers by taking money from depositors)
- Intensive Technology: It is used when a group of specialists are brought together to solve complex problems using a variety of technologies (eg.Hospital – parties are treated with the help of experts drawn from different fields of specialization). Coordination of the different activities is achieved in the system primarily through mutual adjustment among those engaged in solving the problem in the different units. Organic structures would fit in this system using intensive technology.